Omnibus Law on Job Creation Will Boost Economy by 6%: Palace



Laila Afifa

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  • TEMPO.CO, JakartaA spokesman for President Joko “Jokowi” Widodo Fadjroel Rachman claimed the omnibus law on job creation would boost the economic growth to 5.7-6 percent and increase the number of quality human resources to 2.7-3 million people per year.

    “This [law] will support the change in the economic structure to boost the economic growth to 5.7-6 percent,” said Fadjroel in Jakarta, Thursday, January 30.

    The House of Representatives (DPR) had listed the simplification of the bills on job creation on the 2020 National Legislation Program (Prolegnas). The drafts have been finalized and would be submitted to the DPR for further discussion to be issued as a Law.

    Fadjroel mentioned that the law amended a total of 79 regulations and 1,239 articles focused on the regulation simplification for the economic transformation and human resources development.

    Other than the law’s impact on economic growth and employment hike, the law is also expected to raise the investment by 6.6-7 percent which is in line with the increased productivity that leads to higher profit and purchasing power as well as higher consumption rate by 5.4-5.6 percent.

    “Besides, it can also empower our MSMEs that contribute 61.7 percent to Gross Domestic Products and absorbs 97 percent of the total workforce,” Fadjroel remarked, adding that the job creation omnibus law will also stipulate the protection for workers from layoff, the pension, and other compensations.